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Posts Tagged ‘Norway’

Logging the Moratorium Zone in Indonesia’s REDD+ Pilot Province

Yesterday, EIA and Telapak released a new briefing paper – Caught REDD Handed- exposing illegal deforestation in Indonesia.

In summary, the briefing exposed how, on the very day Indonesia’s president signed a new moratorium on forest exploitation in areas of peatland and primary forest across Indonesia, EIA and Telapak were filming a Malaysian owned plantation company actively clearing about 5,000 hectares of it in the REDD+ Pilot Province, Central Kalimantan. The moratorium was breached on day one – hardly a good sign for what is already a weak moratorium.

Excavator clearing forest in PT Menteng area May 2011

Investing in Criminal Deforestation

Worse still, EIA’s research also reveals that Norway, Indonesia’s biggest REDD+ donor, stands to profit from the illegal deforestation of moratorium land through the $41.5 million of shares the country’s pension fund holds in the Malaysian company Kuala Lumpur Kepong. This is despite both the moratorium and the REDD+ Pilot Province being cornerstones of a US$ 1 billion Letter of Intent (LoI) on REDD+ between the two countries. Jago’s previous blog on the moratorium

The briefing also reveals how this is not Norway’s only investment in deforestation in Indonesia. EIA’s research reveals that during 2010, Norway’s portfolio of logging and plantations investments had increased in value from $437 million to $678 million, with $145 of this increase being profits to Norway from increased share values.

EIA has repeatedly warned Norway that its Pension Fund is in danger of profiting from the violation of the forests of Indonesia, but, it seems, to no avail. Indeed, as the briefing explains, Norway has actually put more money into, and made more money from deforesting industries in Indonesia and its neighbouring countries over the year, than it has granted to Indonesia under the Letter of Intent on REDD+.

Despite the whole idea of REDD+ being to reverse the structure of financial incentives – from those that encourage deforestation to those that encourage forest protection, the case of Norway’s pension fund reveals how the financial incentives in the forestry sector remain perverse.

Log in land cleared by PT Menteng, May 2011

EIA and Telapak have submitted the briefing to the Indonesian and Norwegian authorities, in the hope that both parties might prevent the moratorium being swept aside by realities in crime riddled Central Kalimantan.

While Indonesia needs to deliver on its pledges to clean up crime, corruption and illegal plantations in Central Kalimantan and nationwide, Norway’s finance ministry needs to get its pension fund REDD Ready by divesting from companies that drive the very deforestation Norway is hoping to see reduce in Indonesia.

For further information on the breach of the moratorium, see the following resources:

EIA/Telapak Press Release in Englishand Bahasa Indonesia

Caught REDD Handed Briefing in English& Bahasa Indonesia

EIA interviewed on Radio Australia

News coverage on Reuters & Mongabay, and in REDD Montor

 

Jago Wadley

Senior Campaigner

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In March this year, Indonesia and Norway signed a Letter of Intent (LoI) on REDD+  an ambitious scheme to compensate countries such as Indonesia for reducing emissions from deforestation and degradation.

Under the agreement, Norway has pledged $ 1 Billion fund –  a mix of REDD preparation activities in Indonesia, such as policy reforms and institutional strengthening, and also to make performance-based payments for measurable and verifiable emissions reductions in Indonesia’s forestry sector.

View of an illegal logging camp on Salawati Island, one of the Raja Ampat Islands, West Papua, Indonesia. Copyright EIA/Telepak

View of an illegal logging camp on Salawati Island, one of the Raja Ampat Islands, West Papua, Indonesia. Copyright EIA/Telepak

A major plank of the phased agreement is a so-called “moratorium” on the issuance of new forest conversion permits over the next two years. The exact text of the LoI states that Indonesia will implement “A two year suspension on all new concessions for conversion of peat and natural forests”.

The suspension, or moratorium, is due to be implemented from January 2011, and is hoped to offer much needed breathing space for forests while the government identifies already “degraded” lands to be used for new plantations instead of forests and peat lands, and generally reforms its forestry and agriculture sectors.

The world is placing its hopes on this initiative, and is watching with much interest and expectation.

However, signs are emerging that Indonesia is seeking to substantially water down the spirit, and the letter, of the moratorium, at least in relation to global expectations.

Not long after having signed the LoI with Norway, Indonesian officials, including the Minster of Forestry, began describing the moratorium as applying to “primary forests”, not “natural forests” as is written in the agreement.

“What is the difference”, I hear you say? A lot.

If a forest has been logged, it is not longer “primary” – despite remaining viable natural forest. If Indonesia  limits the moratorium to cover merely primary forest, lots of natural forest will be permitted for conversion – fundamentally breaking the spirit of the country’s agreement with Norway – and placing the political will of Indonesia to honour its agreements on forests in serious doubt.

A Presidential Instruction, supposed to be issued in October, and which was to legally institute the Moratorium, is still being drafted.

Mixed messages from Indonesian officials on the scope and scale of the moratorium have persisted, with recent news articles suggesting that it may be further weakened.

How much land will be really saved in Indonesia? Copyright EIA/Telepak

How much land will be really saved in Indonesia?

Special interests have generated much argument over the definitions of “degraded lands” and “natural forest” – arguments that threaten to add to the opacity that all too often colours the legal base of forestry and forest governance in Indonesia. One forestry official close to Indonesia’s REDD+ negotiations with Norway (but since arrested for corruption in Forest Ministry procurement deals) has stated thatLots of people want this policy, and the planned moratorium, to fall through, often by using legal arguments against the definition of natural forests”. The same official also implied that none of these definitions will be clarified in any Presidential Instruction that does emerge, further exacerbating policy uncertainty.

In October, The Jakarta Post reported that “the moratorium will not be countrywide but limited to the three provinces … – Papua, Kalimantan and Aceh. It appears agricultural expansion will be allowed in other provinces and outside the designated primary forest and peatland areas in the three key jurisdictions, according to the minister’s comments.”   

More recently still, Hadi Daryanto, the new Director General in the Ministry of Forestry reportedly explained that “the government would only halt conversions of primary forests and peatlands, not the productive forests allocated for businesses.”

Hadi reportedly informed the Jakarta Post that “the government had allocated up to 41 million hectares as so-called special forest areas.”

Hadi Daryanto cites the example of the Medco Group, Indonesia’s biggest oil and gas company, that has aggressively moved in on biofuels sector in anticipation of increased demand in polluting economies such as the US and EU. Medco has been granted 170,000 hectares of industrial timber estates in Merauke, Papua, which it intends to use for wood pellet production. Burning forests for energy is considered to be “carbon neutral” by traders of carbon offsets credits.

The suspension of “all new concessions for conversion of peat and natural forests” is clearly looking unclear – if news reports are accurate. Let’s hope they are not.

 Indonesia always intended to exempt all companies already operating in their concessions from the moritorium. This includes virtually the entire pulp and paper sector, and many of the big  listed palm oil plantations companies.

Did you know palm oil is used every day products including, soap, chocolate, crisps and cosmetics? Copyright EIA/Telepak
Did you know palm oil is used every day products including, soap, chocolate, crisps and cosmetics?

 Effectively, any company that began operations before January 2011 is exempted.

Many analysts, including myself, expect every bulldozer in the country to be fully employed clearing forests over the next two years.

Any further watering down of the moritorium, if as bad as implied in media reports, would be to render it largely ineffective. The world will see what happens.

What's the fate for those who inhabit the forest? Copyright Mark Gudmens

What's the fate for those who inhabit the forest?

Jago Wadley

Senior Campaigner

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Copyright EIA

Clare Perry makes up one half of our cetaceans team, together with Jenny Lonsdale, co-founder of EIA

Since the June annual meeting of the International Whaling Commission (IWC) rejected the proposal to allow Japan, Norway and Iceland IWC endorsed commercial whaling catch limits, we have been catching up on all the other work that the cetacean campaign does outside the IWC meeting.

There is a tremendous amount of work to do in the coming months and in the lead up to next year’s annual meeting if we are to ensure that the conservation agenda moves forward and aspirations for resumed commercial whaling are kept in abeyance.

Copyright EIA

The Japanese Delegation at the IWC earlier this year

World attention is usually focused on Japan’s commercial whaling, carried out under the guise of so called scientific research. However, whaling in the North Atlantic this summer boasts some shocking statistics:

Norway has killed about 464 minke whales; Iceland has already killed hundreds of fin and minke whales, while the Faroe Islands killed more than 750 pilot whales.

Catching fin whales – the second largest animal on the planet – has resulted in thousands of tonnes of whale meat being stockpiled in Iceland because there is no market. Japan doesn’t seem keen to add Icelandic fin whale to its own stockpile which reached 5,000 tonnes this August. So it seems these magnificent animals have been killed for nothing but politics.

Meanwhile the Icelandic Government is engaged in negotiations on its possible accession to the EU. It has been given a strong message that whaling is not permitted in the EU but this is a significant issue in the negotiations and we are following developments carefully.

Copyright EIA

EIA's first campaign focused on exposing the atrocious whaling that was taking place in the Faroe Islands, a Danish territory, some few 100kms of mainland Scotland. This is an image from our archive.

The hunts in the Faroe Islands are particularly shocking because the Islanders were advised 2 years ago by their own world-leading medical expert that they should not eat any pilot whale meat or blubber due to the high levels of pollutants. This frightening warning is being ignored by the Faroese Government and people.

We are gathering information on the ground to put pressure on these three Governments to end the cruel and unnecessary slaughter.

At the same time, our work continues to develop the IWC’s vital work to address other environmental threats to whales, dolphins and porpoises (cetaceans). From 21st – 24th September, we will attend the IWC’s workshop on ship strikes. Both endangered and more plentiful populations of whales are vulnerable to collisions with vessels and the IWC is working hard to quantify the problem and work with scientists and industry to find mitigating solutions. We will be bringing information on the problem of collisions between whales and sailing boats which can be catastrophic for whales, sailors and their boats – it should be an interesting meeting.

Jenny Lonsdale and Clare Perry – EIA Cetaceans TeamCopyright EIA

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