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Reports of New Mechanisms Feasibility Studies: FY2011

Title of Feasibility Study (FS)New Mechanism Feasibility Study for REDD+ and Bio-Fuel Production and Utilisation in Gorontalo Province, Indonesia
FYFY 2011
Main Implementing EntityKanematsu Corporation
FS PartnersTaiju Research Inc.
Indonesia-Japan Friendship Association
Mitsubishi Research Institute (REDD+ and MRV)
JIRCAS (Safeguard)
Kokusai Kogyo Co., Ltd. (Remote Sensing and Ground Truthing)
Location of Project ActivityIndonesia
Category of Project ActivityREDD+, and Biomass Utilisation
Summary of FS ReportPDF (836KB)
Description of Project/ ActivityDeforestation drivers and countermeasures;
(1) Corn farmers living near the forest frontier slash & burn the forest due to low yield
    - Capacity building for high productivity agriculture, such as agro-forestry (coconuts, cacao, etc.), so that the famers may make more profit without "slash and burn" the forest.
(2) Kerosene oil supply is not sufficient. People cut the trees because they cannot afford to buy Kerosene
    - Crude Bio-fuel program covers the shortage of Kerosene. Project Developer will buy Jatropha seeds etc. from farmers at rational price, and refines crude oil, then, distributes to farmers
Indonesia-Japan Friendship Association will coordinate with local Gov., farmers, communities, and the developer.
Reference Scenario and Project/ Activity BoundaryProject Area and Reference Area are selected according to forest map and village border, discussing closely with people of five villages.
Project Area : 20,230ha, Reference Area : 155,020ha
Project area is still covered by forest, however, the area is
under the risk of deforestation.
Reference Scenario: Forest area size of Project Area decreases at ▼0.68%/year, and its carbon density declines.
Project Scenario: Forest area will continue to be the same size with 2010, and the carbon density will rise.
Monitoring Methods and PlanKKC supervises the local government staffs and GIS consultant for the ground truthing, which verifies the satellite imagery analysis. Technology transfer of remote sensing also comes to the local Government.
Local people participate the data sampling monitoring to obtain some incentives from the activity, which also contribute to lowering costs and improving the project feasibility.
GHG Emissions and ReductionsREDD+ Project : Reduction of 19,647 – 61,429 tCO2/y by several activities
Bio-fuel alternative to Kerosene : 237 tCO2/y
MRV System for GHG ReductionsWe develop reliable but more simplified methodologies;
    - Reasonable size of reference area for setting the baseline
Application of "default regional deforestation rate" should be considered.
    - Simple carbon stock sampling (ground truthing) for monitoring
    - Setting "standard sampling rates" should be implemented.
We provide incentives for local people to participate
    - Data sampling by local people
    "Lowering costs and improving environmental awareness" could be expected.
    - Rewards to forest protection activities (patrol, fire controls etc.)
    "Monitoring people's activities & efforts" and "rewarding their efforts" could also contribute to improving the project feasibility.
Analysis of Environmental, Socioeconomic and other Impacts (including Securement of Environmental Integrity)Recovery of vegetation and ecosystem functions will be expected. Sulawesi Island is well known for its abundance in endemic species of animals and plants, and the national park there is endeavoring to preserve its biodiversity. There is a high risk of the ecosystem being damaged and collapsed, so it will be meaningful to perform the monitoring of the situation of not only forests but also its ecosystem
Financial PlanningCarbon credit revenue will be used effectively as incentive for the REDD+ activities, assuming that credit price will be US$ 12-21/tCO2e during 2013-2022. The credit income US$ 737-1,290k/year shall cover the cost of activities such as remote sensing, capacity building, refinement of crude oil, or forest protection activities etc.
Introduction of Japanese TechnologyAs the satellite remote sensing is very important for the monitoring, so we promote introduction of ALOS-2 radar sensor mounted on a satellite, which is scheduled to be launched in fiscal 2013, and is considered to be suitable for REDD+ projects, the existence of cloud always gives influence on the quality of satellite images. Thus, it is important to conduct satellite monitoring that uses SAR images.
(i.e. Improvement of Local Environmental Problems)
It is useful for REDD+ project to evaluate the impacts, by monitoring the number of living species, sizes, distribution etc. This kind of measurements will bring co-benefits to preservation of biodiversity and mitigation of climate change.
Contribution to Sustainable Development in Host CountryIndonesian government is promoting a sustainable forest management and plantation in local communities. Gorontalo government and its communities are also promoting restoration of vegetation in forest. Thus, our project, we believe, rightly meets the policy of the governments, and will lead to the sustainable development.

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