1 Introduction
7
Part II: Climate Change Mitigation and Cross-Cutting issues
(finance, communication, law)
Part two of this book (Chap. 10 till Chap. 15) highlights the climate change mitigation
and cross-cutting issues.
In Chap. 10, the land use change was examined in the case of peat forest conversion
into oil palm plantation by Novita et al. Over past decades, large areas of tropical
peat forests have been converted to oil palm plantation in Indonesia resulting in
significant carbon emissions into the atmosphere. This chapter aims to quantify the
ecosystem’s carbon stocks in a total of six sites: two primary peat swamp forest sites,
one secondary peat swamp forest site, and three young oil palm plantation sites in
Tanjung Puting, Central Kalimantan, Indonesia. Using a stock difference approach,
we estimated potential carbon emissions from vegetation change resulting from the
conversion of primary peat swamp forest to oil palm plantation of 640 ± 114 Mg
CO 2 e/ha. Finally, while restoring peatlands is important, avoiding peat conversion
is imperative for Indonesia’s climate change mitigation effort.
Later, Goh et al. in Chap. 11 provide advices on transforming exploitative landbased activities in order to reduce terrestrial carbon stock loss. This chapter using
proposal approaches on transforming land use based activities draw upon previous
studies. The conventional exploitative land-based economies are facing a predicament: how to maintain economic growth not only without causing further environmental impacts but also repairing the damage done in the past. This overview
identified and discussed four key transformative strategies with the elaboration of
the experience in Kalimantan as well as the associated opportunities and challenges.
The first two strategies with wealth creation as the center of policy-making may
prevent further degradation but are inadequate to repair the previous environmental
damage. Similarly, the last two strategies that emphasize restoration have limited
contribution to economic growth.
In Chap. 12, Sari et al. proposed strategic and innovative funding sources in
order to fund the peat restoration that was aimed by the Government of Indonesia.
The amount estimation is US$ 1.70 billion for the whole 2.49 million ha target. This
chapter aims to present business cases for peatland restoration and to propose a potential innovative financial instrument to finance the restoration activities in Indonesia.
The creation of investment instrument is a necessity by means of structuring a peat
bond where a combination of cash and carbon asset returns can be gained by investors.
The second author of this chapter, Alue Dohong PhD, is now the Vice Minister at
the Ministry of Environment and Forestry, the Government of Indonesia.
Mutiara et al. in Chap. 13 also explore climate finance as a tool to assess public
expenditure in East Kalimantan province, i.e., climate budget tagging as defined by
UNDP. Using climate budget tagging as defined by UNDP as a public expenditure
assessment tool, insights from East Kalimantan Province and West Kutai District
were attained. The results of climate budget tagging in the province and one of
its districts consecutively depict that 7 and 47% of budget allocation in 2015 were
potentially in support of low carbon development; while in 2016 both allocations in
7
Part II: Climate Change Mitigation and Cross-Cutting issues
(finance, communication, law)
Part two of this book (Chap. 10 till Chap. 15) highlights the climate change mitigation
and cross-cutting issues.
In Chap. 10, the land use change was examined in the case of peat forest conversion
into oil palm plantation by Novita et al. Over past decades, large areas of tropical
peat forests have been converted to oil palm plantation in Indonesia resulting in
significant carbon emissions into the atmosphere. This chapter aims to quantify the
ecosystem’s carbon stocks in a total of six sites: two primary peat swamp forest sites,
one secondary peat swamp forest site, and three young oil palm plantation sites in
Tanjung Puting, Central Kalimantan, Indonesia. Using a stock difference approach,
we estimated potential carbon emissions from vegetation change resulting from the
conversion of primary peat swamp forest to oil palm plantation of 640 ± 114 Mg
CO 2 e/ha. Finally, while restoring peatlands is important, avoiding peat conversion
is imperative for Indonesia’s climate change mitigation effort.
Later, Goh et al. in Chap. 11 provide advices on transforming exploitative landbased activities in order to reduce terrestrial carbon stock loss. This chapter using
proposal approaches on transforming land use based activities draw upon previous
studies. The conventional exploitative land-based economies are facing a predicament: how to maintain economic growth not only without causing further environmental impacts but also repairing the damage done in the past. This overview
identified and discussed four key transformative strategies with the elaboration of
the experience in Kalimantan as well as the associated opportunities and challenges.
The first two strategies with wealth creation as the center of policy-making may
prevent further degradation but are inadequate to repair the previous environmental
damage. Similarly, the last two strategies that emphasize restoration have limited
contribution to economic growth.
In Chap. 12, Sari et al. proposed strategic and innovative funding sources in
order to fund the peat restoration that was aimed by the Government of Indonesia.
The amount estimation is US$ 1.70 billion for the whole 2.49 million ha target. This
chapter aims to present business cases for peatland restoration and to propose a potential innovative financial instrument to finance the restoration activities in Indonesia.
The creation of investment instrument is a necessity by means of structuring a peat
bond where a combination of cash and carbon asset returns can be gained by investors.
The second author of this chapter, Alue Dohong PhD, is now the Vice Minister at
the Ministry of Environment and Forestry, the Government of Indonesia.
Mutiara et al. in Chap. 13 also explore climate finance as a tool to assess public
expenditure in East Kalimantan province, i.e., climate budget tagging as defined by
UNDP. Using climate budget tagging as defined by UNDP as a public expenditure
assessment tool, insights from East Kalimantan Province and West Kutai District
were attained. The results of climate budget tagging in the province and one of
its districts consecutively depict that 7 and 47% of budget allocation in 2015 were
potentially in support of low carbon development; while in 2016 both allocations in