Summary of Floresta’s history, objectives and strategy in Aceh

Building a prosperous, green future for Aceh

Dr. Charles EhrhartJakarta 25 April, 2013

About Floresta

Socially and environmentally sustainable business headquartered in London, England.

Our mission is to enhance the welfare of current and future generations through the rehabilitation and sustainable stewardship of tropical forest landscapes.

We put private sector finance and knowhow behind government led, citizen shaped plans to reduce tropical deforestation and build green economies.

We have been active since 2010 in Aceh, Indonesia and in Acre, Brazil since 2011.

Credentials

Floresta is a recognised impact entrepreneur, harnessing the power of private enterprise to generate measurable benefits for local communities and the environment.

Finalist in the WWF Tropical Forest Challenge to identify the world’s best for-profit solutions to conserve tropical forest biodiversity.

Listed by leading impact investor networks, including MaxiImpact, the Global Impact Investing Network (GIIN) and Toniic.

TrustLaw Connect (Thomson Reuters Foundation) partner.

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Floresta’s engagement in Acre, Brazil

The Brazilian State of Acre is developing the world’s first Jurisdictional REDD Programme as part of the Verified Carbon Standard’s Jurisdictional and Nested REDD Initiative.

Floresta is responsible for implementing a Reforestation Sub-programme (RSp) under Acre’s Jurisdictional Programme.

The RSp has been designed with the State to address poverty reduction goals, facilitate green economic growth, increase forest cover and conserve Acre’s natural forest ecosystems.

Floresta will be allocated Verified Caron Units (VCUs) for implementing the RSp. The sale of these VCUs will help finance our activities in Acre, including green industry start-up costs (e.g. farmer-owned, renewable energy and timber plantations).

The RSp is expected to create between 25,000 and 30,000 permanent green jobs.

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Floresta’s history in Aceh

Floresta’s CEO met Aceh’s previous Governor at the Bali Climate Conference and was asked to support the Province’s plan for green growth and sustainable conservation of the Leuser Ecosystem.

An MoU was signed with provincial authorities and a formal partnership initiated with BPKEL in 2010.

Feasibility study completed in 2011.

Substantial financial support for conservation of the Leuser Ecosystem provided by Floresta in 2010, 2011 and 2012.

Draft Sustainable Development and Conservation Programme (SDCP) document completed in 2012.

Overview of SDCP

The SDCP aims to improve the lives of Aceh’s people by building a vibrant green economy that conserves the integrity, hydrological functions, and long-term productivity of the Province’s natural forests, especially in and around the Leuser Ecosystem.

The SDCP is government-led but implemented by a consortium of public institutions, private-sector companies and civil society organisations.

The SDCP was initially designed to build upon and strengthen linkages between the Green Economic Development and Investment Strategy for Aceh, Indonesia (“Aceh Green”) and the 2009-2014 Management Plan for the Leuser Ecosystem.

The underlying objectives of Aceh Green (i.e. green economic growth) and the Leuser Management Plan (i.e. the conservation and sustainable use of forest ecosystem goods and services) remain crucial to improving people’s lives, even if Aceh’s policy environment has moved on.

Major programme components

Protecting and restoring Aceh’s forest and peat swamp ecosystems.

Strengthening natural resource management institutions, structures and processes.

Creating socially and environmentally sustainable forest-product supply chains.

Improving the productivity and profitability of smallholder farming.

Planned investments in green economic growth &sustainable supply chains for forest products

Restart Kertas Kraft Aceh.

Rehabilitate 46,800 ha of Tusam Hutani Lestari pine plantations to supply KKA.

Establish 12,000 ha community-owned pine plantations to supply KKA.

Rehabilitate at least 35,000 ha of the PT Acehnusa Indrapuri plantations for sawn wood, pellet and cellulosic ethanol.

Develop up to 20,000 ha of community-owned plantations to make Aceh’s local saw milling industry sustainable.

Develop up to 7,500 ha of community-owned plantations and mills for veneer export.

Build at least two 10 MW biomass power plants and establish 8,000+ ha of community-owned biomass plantations.

Geographic spread of major investments

Planned investments in sustainable farming

Improve the productivity & profitability of agricultural livelihoods.

Provide vocational and small-business training.

Support community-based small businesses.

On-farm investments are designed to improve the productivity and profitability of family farms. This is primarily about doing conventional activities better (in terms of higher yields, more predictable profits and greater environmental sustainability) so that people aren’t forced to cut forests in order to make a decent living. However, in some cases, on-farm investments will be about restoring household income levels after reducing access to fragile forest ecosystems.