2. Requirement: Attach your ToR for this component as a separate Annex 1. Obj ectives and activities: Background

44 • Assess land management responsibilit ies bet ween l ocal and nat ional government s in relat ion t o f orest and non-f orest land on peat s. Enhancement of t he capacity of communit y groups, including adat communit ies to engage in forest management t hrough REDD activit ies . • Improve qual it y of lif e of low income f amil ies, living in or adj acent t o nat ural f orest s, t o prot ect t he right s of f orest dependent indigenous peoples and local communit ies, • Reduce ill egal logging, t hrough f . e. an ext ension of successf ul models such as t he Kecamat an Devel opment Scheme and t he Nat ional Program f or Communit y Empowerment PPMNM. Indicators of performance for this obj ective: • Invest ment needs def ined and implement ed • Human resource and inst it ut ional capacit y built at t he nat ional and sub-nat ional Provincial and dist rict levels 6. 2. Requirement: Attach your ToR for this component as a separate Annex 6. See Annex 6 Component 7: Develop a Reference Scenario

7. 1. Obj ectives and activities: Background

Prior t o COP-13, Indonesia, support ed by WB, UK, Aust ralia, and German conduct ed a comprehensive st udies relevant t o REDD including t echnical and met hodol ogical aspect s. The st udies were carried by bot h nat ional and int ernat ional expert s, coordinat ed by t he Minist ry of Forest ry, and communicat ed t o st akeholders under t he umbrell a of Indonesia Forest Climat e Alliance IFCA. Ref erence Emissions Level REL was one of REDD met hodological aspect s covered under t he IFCA st udy see Annex 7a. Background Inf ormat ion f or Component 7. The st udy al so i dent if ied t he gaps need t o be f illed, possible improvement of t he exist ing syst ems and ot her met hodol ogical relevant including inst it ut ional set t ing. Thr ough bi l at er al cooper at i on wi t h Aust r al i a, Indonesi a has devel oped For est Resour ce Inf or mat i on Syst em FRIS and Nat i onal Car bon Account i ng Syst em Indonesi a NCAS The devel opment and i mpl ement at i on of t he syst ems r equi r e suf f i ci ent capaci t i es bot h human r esour ces and i nst i t ut i ons. Li st s of act i vi t i es and f i nanci al r esour ces needed under bot h syst ems have been i dent i f i ed. At l east an amount of US 16, 395, 000 i s needed t o devel op f ur t her and st ar t oper at i ng t he FRIS and NCAS, w hi ch w i l l need mobi l i zat i on of r esour ces f r om i nt er nat i onal sour ces see Annex 7b: Nat i onal Car bon Account i ng Syst em NCAS. Development of ref erence emissions l evel REL wil l be benef it t ed f rom t he works have been carried out under FRIS and NCAS, however, t here are considerable works remain t o be done, including dat a acquisit ion and processing, analyt ical works t o provide opt ions of approaches f or 45 REL set t ing. St rengt hening human resources and inst it ut ional capacit ies, policy dialogue, and st akeholders communicat ion are also cent ral in t he process of REL est ablishment . Annex 7a provides Backgr ound Inf or mat i on of init ial works IFCA st udy 2007 on REL set t ing and challenges t o be t ackled during readiness phase. Obj ectives for this component: Develop ref erence emission level REL which will meet int ernat ional requirement s guidelines as well as suit able wit h nat ional circumst ances and relevant policies enable implement at ion of REDDI approach ‘ nat ional account ing wit h sub-nat ional implement at ion’ . For t his purpose, and according t o Regulat ion on REDD PERMENHUT No. 30 Menhut -2 2009, REL need t o be est ablished at t he nat ional, provincial, and dist rict level management unit . Expected Outcome: 1. Opt ions of REL scenarios as t he basis f or select ing t he most appropriat e REL f or REDDI. 2. REL f or nat ional and sub-nat ional provincial and dist rict level est abl ished 3. Improved human resources and inst it ut ional capacit ies at al l levels f or REDDI implement at ion 4. Suf f icient resources t o carry out act ivit ies under t his component . Act ivit ies t o achieve out come: 1. Analyt ical works : analyze approaches t o est ablish REL t o det ermine t he most suit able approach f or REDDI 2. Est ablishment of Nat ional Ref erence Emission Level will be t he guidance f or t he est ablishment of Provincial and Dist rict REL 3. Est ablishment of Provincial Ref erence Emission Level must be consist ent wit h Nat ional REL 4. Est ablishment of Dist rict Ref erence Emission Level must be consist ent wit h Provincial and Nat ional REL Further elaboration of the activities are follows : 1. Analyt ical works. This is t o provide a comprehensive t echnical and met hodol ogical basis as well as macro-economic and ot her relevant analysis f or ident if ying t he most appropriat e REL f or REDDI. For t his purpose t he f ol lowing approaches t hat are current ly available will be analyzed t o provide suit able basis f or REL est ablishment : a. Hist orical emission approach an average of past emissions — inf ormat ion on past emission is used t o predict f ut ure emission. Some issues need t o be agreed, f or example, t ime int erval covered, t ime of commencement , and how f ar int o t he f ut ure it should be proj ect ed. b. Modeling approach- ident if ies and int erpret s t he f ut ure ef f ect s of drivers such as popul at ion growt h and economic growt h on def orest at ion. For t his proj ect ions drivers of def orest at ion degradat ion can be dif f erent iat ed int o pl anned or unpl anned. The advant age of t his approach is t hat development obj ect ives and economic anal ysis are t aken int o account . c. Hybrid approach mixed modeling - t o consider a mixed REL where emissions f rom pl anned and unpl anned drivers of def orest at ion and f orest degradat ion are considered dif f erent ly and separat el y. In t his case, emissions f rom unpl anned act ivit ies are measured against a REL based on hist orical unplanned emissions, or an average of hist orical emissions; eit her of which could be modif ied according t o proj ect ed t rends in t he key drivers of unplanned def orest at ion. Emissions f rom pl anned act ivit ies will be devel oped on t he basis of nat ional policy def i ning t he area of f orest t o be convert ed t o 46 ot her land uses. The mi xed approach consider count ry-specif ic circumst ances including proj ect ed development act ivit ies, popul at ion growt h, GDP, and ot her development t raj ect ories. Analyt ical works will need t o t ake int o account relevant COP decisions and SBSTA conclucions, and Minist erial Regulat ion on REDD PERMENHUT No. P. 30 Menhut -II 2009, since est ablishment of REL is a polit ical decision alt hough t his must be backed up wit h a st rong anal yt ical basis. 2. Est abl ishment of nat ional and sub-nat ional provincial and dist rict emissions ref erence level REL. Nat ional Ref erence Emission Level will be t he guidance f or t he est abl ishment of Provincial and Dist rict REL, 3. Pol icy dialogue, subj ect t o availabil it y of f unding, will be held at t he nat ional and sub- nat ional levels e. g. provincial, dist rict t o come up wit h t he most suit able REL f or REDDI. Policy dialogue will be set up in such away, depending on t arget groups, scopes f ocus t o be discussed at t he nat ional and sub-nat ional levels as well as bet ween nat ional and sub- nat ional levels. Management of readiness as in Component 2 see component 2 point c will be used f or bot h policy dial ogue and st akeholders communicat ions 4. Awareness raising, capacit y building, t echnology t ransf er and know how, shared learning, access t o dat a inf ormat ion, are int egral part of t he impl ement at ion under t his component . Subst ant ial resources wil l be needed f or t his purpose, and so, mobilizat ion of resources f rom int ernat ional sources will be crucial. Partners and organizations involved: Act ivit y 1 : Furt her analyt ical works f or REDDI will be carried out by expert s f rom Minist ry of Forest ry and ot her inst it ut ions including Minist ry of Agricult ure, Nat ional Aeronaut ical and Space Agency LAPAN, Nat ional Survey and Mapping Agency Bakosurt anal, CIFOR, ICRAF, Universit ies, and ot her scient if ic inst it ut ions, as well as int ernat ional expert s whenever needed. Act ivit y 2 t o 4 : Will invol ve all possible st akehol ders, depending on t he t ypes of act ivit ies and necessary t arget groups. Ref erring t o Component 2 see point 2 c, t he part ners st akeholders includes Minist ry of Environment , Minist ries relat ed t o l and use sect or, local government , Nat ional Council on Climat e Change DNPI, BAPPENAS, Minist ry of Finance, privat e sect or, scient if ic inst it ut ions, civil societ ies including NGOs, indigenous people and local communit ies, int ernat ional part ners bilat eral and mult ilat eral cooperat ions, int ernat ional organizat ions working in Indonesia. Table 11. Schedule and Sequencing of activities for REL establishment : Schedule Activit ies 2009 2010 2011 2012 Analytical Works : Analyze approaches t o est ablish REL t o det ermine t he most suit able approach f or REDDI :

1. Historical t rend an average of past emissions