Harmonizing land-based investment (MIFEE) and GHG reduction policies in Papua

THINKING beyond the canopy

Harmonizing land-based investment (MIFEE) and GHG reduction policies in Papua

6-7 April 2013, Merauke

Obidzinski K., Komarudin H., Dermawan A., Andrianto A.

Krystof Obidzinski

Need to insert some Papua photos here


Objectives

• Stimulate discussion about the relationship between DEV and Climate Change initiatives in the province

• Ask questions about the ‘gap’ between development targets and ENV sustainability

• Is there are a ‘gap’? If so, how to bridge? How to harmonize DEV and ENV agendas?

• Food for thought for Group Discussion

• Identify research needs/areas for CIFOR’s projects


Indonesia Today

Source: McKinsey 2012


….and in 2030

Source: McKinsey 2012


MP3EI: quantum leap forward

Source: MP3EI


USD 400 bln in overall investment

Kalimantan

Source: MP3EI


Emphasis on resource extraction and processing

Main economic activity Sumatera Java Kalimantan Sulawesi Bali-Nusa Tenggara

Papua – Kep. Maluku

Steel Food and beverages Textile Transportation equipment Shipping Nickel Copper Bauxite Palm oil Rubber Food agriculture Tourism ICT Coal Oil and gas Jabodetabek Area Sunda Straits National Strategic Area Defense equipment Animal husbandry Timber Cocoa Fishery


MP3EI Papua

Source: MP3EI


MP3EI Papua = MIFEE


But there are some challenges

Source: Strategic Asia 2012


… and there are some concerns


Calls for a greener approach


Steps towards a greener approach• 26% GHG national emission reduction target, or 41%

with International assistance• LCGS - Low Carbon Growth Strategy• RAD-GRK - GH emission reduction action plan• SRAP REDD+ - Strategy and Action Plan REDD+• Harmonization of economic development and GHG

emission reduction

KOMPAS: Aspek Lingkungan Diadopsi MP3EI,7 July 2012BISNIS INDONESIA: MP3EI Usulan konsep ekonomi hijau disambut baik, 12 August 2012Maybe something from Papua Pos???BAPPENAS: MP3EI Hijau Tidak Hambat Investasi….. selama ini perusahaan sudah memiliki rencana bisnis yang ramah lingkungan (greening), 16 Jan 2013


“Green Economy”• Allows for: economic growth but significantly

reduces environmental risks and ecological scarcities

• Understands that:• We are reaching limits in our use of the natural

resources• Environmental and social costs of our current

economic model must be taken into account in devising future development solutions

• Need for a balance between growth, income, jobs, environmental quality and equity


“Green economy” challenges to MIFEE in Merauke, Papua

• Since 2007 MIFEE has undergone evolution, and it still continues…

• Downsizing, staged approach• What is the current design and how does it

relate to GHG emission reduction policies?• How does MIFEE respond to national targets

of food and energy security?• How does MIFEE do for local food security

and welfare?• What gaps are there and how to help bridge

them?


Proposed activities and input into policy process

• Review of MIFEE “evolution”• Current state of MIFEE investments under MP3EI• Examination of investment operations in key

commodities (oil palm, HTI, cassava, sugar cane)• Analysis of:

• Impacts (social, economic, environmental)• Community engagement and hak ulayat• Progress with adoption of best management

practices• Gap analysis of best management practices vis-à-

vis GHG reduction targets• Bottlenecks and enabling conditions

• Recommendations and policy options