Wednesday, February 11, 2009

Jambi village set to trade in carbon credits

The forest near Guguk village, Sungai Manau district in Merangin regency, Jambi, has potential carbon reserves, according to a recent joint study by the Jambi office of the Indonesian Committee for Humanity Conservation Information Center (KKI Warsi) and the International Center for Research in Agroforestry (ICRAF). 

Jambi KKI Warsi executive director Rakhmad Hidayat said the method used to assess carbon reserves was called the rapid carbon stock assessment (Rasca). Based on the study, carbon reserves at the forest are estimated at 261.25 tons per hectare. 

"Guguk could reap an equivalent of Rp 19.8 billion at an exchange rate of Rp 11,000 to the dollar," he said. 

Guguk village stands to earn US$1.8 million annually just from selling carbon credits, with a ton of carbon trading for $10 and the forest area spanning 690 hectares. 

The carbon assessment scheme is crucial in determining the value received by the community, as it will serve as a comparable method developed by carbon brokers who still use obscure and unfamiliar methods that only certain parties can benefit from. 

"This is important to understand, because brokers also have various interests in the carbon credit transaction they deal in," he said. 

Awareness of the carbon credit assessment will enable the com-munity to ascertain the financial value they can receive, and the forest will not be regarded as merely a source of timber, thus preventing it from being exploited through deforestation. 

The appraisal is aimed at convincing stakeholders that by preserving the forest and not converting it into large-scale plantations or mining or forestry concessions, it could bring far more significant economic benefits and help prevent environmental damage. 

"Hence, it could bring much benefit to the people," Rakhmad said. 

The Guguk forest, mapped under Merangin regency Decree No. 287/2003, has so far been protected by the community because it is a source of clean water for residents. Geographically, the forest is also vital in preventing landslides and floods. It is also rich in biodiversity. 

Based on a study conducted by KKI Warsi Jambi, the forest is home to 89 bird species, 37 of which are protected, including the helmeted hornbill and great argus. 

It is also home to 22 mammal species, some of which are protected, including the Asian tapir and the sun bear, in addition to 84 tree species, such as the meranti, balam and marsawa, which can grow up to 55 centimeters in diameter. 

Rakhmad also called on the provincial administration to prepare regulations to protect the remaining forest that could potentially be used for carbon credits, prior to the commencement of the carbon trade. 

"Besides that, the administration must also support the authority of customary rights in the carbon trade scheme, and strengthen a people's institution that would serve as a beneficiary for the carbon trade later," he said.
Source: http://www.thejakartapost.com/news/2009/02/06/jambi-village-set-trade-carbon-credits.html