In 2014, in relation to the Land Use-based Green Economy Program, the WWF has conducted the Assessment of Emission Reduction on Land-based Sectors.
Based on data of forest cover in the West Kutai District, deforestation that occurred in 2000-2009 covered an area of 135,762 ha and in 2009-2013 it covered an area of 38,756 ha, with total deforestation in 2000-2013 of 174,518 ha. The deforestation rate was 1.35%, while the emission levels arising from deforestation and forest degradation in the West Kutai District in 2000-2013 was 112,281,407 TCO2eq, with total annual emission rate of 8,637,031 TCO2eq/year. Based on historical projections (BAU), the emission level of West Kutai District in 2015-2020 is estimated to be around 51,822,186 TCO2eq.
Based on the description of the Land Use-based Green Economy Program and the results of the Assessment of Emission Reduction on Land-based Sectors, it is found that there is a need for a supporting institution that strongly encourages the implementation of the development of green economy and the efforts to reduce emission at the district level. The conversion of natural forest covers to become oil palm plantations, industrial plantations and community farms, unsustainable management of natural forests (HPH), lack of management of protected forests, and the lack of capacity in the development of green villages; are several other factors supporting the need to establish a managing institution for the development of green economy at the district level.
The results of the Assessment of Emission Reduction of Land-based Sectors specifically noted the need to actively involve all concerned elements, management of activities that is proper and enables monitoring and evaluation to be conducted according the expected goals. One of the recommendations of the assessment is the need for the development of institutional options, identification of financing schemes, and mechanisms of benefit distribution to all stakeholders involved in the efforts to reduce emissions.
On the development of institutional options, there needs to be an exploration on the best possible institutional structure and identification of stakeholders that should be involved in the management of the program and activities. The assessment recommended for the development of the Program Management Unit (PMU) structure. The development of institutional options for the green economy’s financial and program administrator in West Kutai will include the work to:
- Assess the existing governance of the Heart of Borneo Working Group (HoB WG) in West Kutai District as the coordinating institution for the development of green economy at the district level,
- Facilitate the development of governance and work mechanism of HoB WG in West Kutai District,
- Assess the need to develop institution of financial and program administrator at the district level,
- Facilitate the formulation of multi-stakeholder institutional options for financial and program administrator according to the characteristics and needs,
- Develop the initial document of basic structure and policy for the institution of financial and program administrator.
This program is supported by the WWF Indonesia Foundation based on the Grant Agreement No. 185/WWF-ID/LGL-GRA/X/2014, dated 4 October 2014, with a total funding of IDR 243,000,000 with a program period starting from 5 October 2014 and ending on 31 October 2015.