Tag Archives: indonesia

Indonesia eyeing $1bn climate aid to cut down forests, says Greenpeace

palm-oil-tree

Vague legal definitions may allow Indonesia to class forests as 'degraded' and 'rehabilitate' the land with palm trees and biofuel crops

Indonesia plans to class large areas of its remaining natural forests as “degraded” land in order to cut them down and receive nearly $1bn of climate aid for replanting them with palm trees and biofuel crops, according to Greenpeace International.

According to internal government documents from the forestry, agriculture and energy departments in Jakarta, the areas of land earmarked for industrial plantation expansion in the next 20 years include 37m ha of existing natural forest – 50% of the country’s orangutan habitat and 80% of its carbon-rich peatland. More than 60m ha – an area nearly five times the size of England – could be converted to palm oil and biofuel production in the next 20 years, say the papers.

“The land is roughly equivalent to all the currently undeveloped land in Indonesia,” says the report. “The government plans for a trebling of pulp and paper production by 2015 and a doubling of palm oil production by 2020.”

The result, says the environmental group in a report released in Jakarta today, would be to massively expand Indonesia’s palm, paper and biofuel industries in the name of “rehabilitating” land, while at the same time allowing its powerful forestry industry to carry on business as usual and to collect international carbon funds.

“[Money] earmarked for forest protection may actually be used to subsidise their destruction with significant climate, wildlife and social costs,” said the report.

The report comes at a critical time in global climate talks, due to resume next week in Cancun, Mexico. Forestry and peatland contribute nearly 18% of all global carbon emissions and Indonesia is negotiating a model $1bn forestry deal with Norway and the US. This could save millions of tonnes of climate emissions in return for Indonesia agreeing to a moratorium on future forest and peatland clearances.

But weak legal definitions of “forest” and “degraded land”, have allowed the global logging industry and officials in some governments to take advantage of an ambitious UN forest-reform scheme known as Redd (Reduced emissions from deforestation and degradation). This would pay countries to replant trees and restore land. Indonesia has pledged drastic action to reduce its greenhouse gas emissions by 26% on its own and 42% with international climate aid. If it agrees to a binding deal to limit deforestation, says Greenpeace, this would send a powerful message to other forested countries.

“A strong deal to prevent the destruction of natural forests and peatlands would put the troubled climate talks back on track. But if international money intended to support the protection of forests and peatland is allowed to enable their destruction, any confidence in the UN talks is expected to dissolve,” said a Greenpeace spokeswoman.

The Indonesian and Norwegian governments last night declined to respond until they had seen the report.

Source: guardian.co.uk

Malaysia and Indonesia warn that EU is hampering palm oil trade

Palm Oil

Palm Oil

Indonesia and Malaysia warned on Tuesday that new European rules to ensure the sustainability of biofuels might hamper their exports of palm oil and breach rules on free trade. But they stopped short of threatening action at the World Trade Organization and said they would monitor the situation.

The European Union’s energy chief, Guenther Oettinger, set green standards for biofuels in June to discourage companies from felling forests to grow profitable biodiesel or bioethanol crops.

“This directive discriminates (against) palm oil producers compared with other competing oil crops used as feedstock for biofuel production,” Malaysian commodities minister Bernard Dompok and Indonesian deputy agriculture minister Bayu Krisnamurthi said in a joint statement.

“This directive has set criteria … which could form a non-tariff barrier for the imports of palm oil into the European Union,” they added during a visit to lobby EU officials.

The EU wants to obtain 10 percent of its road fuels from renewable sources by 2020, about 90 percent of which is seen coming from crops such as grains, palms or sugar cane.

Within the next decade that could create a market worth $17 billion, and critics say that creates an incentive for farmers to hack into forests.

The new sustainability standards state that biofuels used to meet EU targets must save at least 35 percent of greenhouse gases compared with oil and cannot come from recently cleared land.

EU experts are also examining a new scientific perspective known as “indirect land use change”, which suggests that even biofuels grown on established agricultural land can have widespread negative impact by forcing food production into new areas.

Krisnamurthi told reporters on Monday that although about 3-4 percent of plantations had been developed unsustainably, the greenhouse gas savings from Indonesian palm oil were generally much higher than envisaged in the EU rules. He urged a review.

“The first casualties will be the smallholding farmers,” he added. “The big companies will have the energy and capability to meet the requirements.” (Reporting by Pete Harrison, editing by Jane Baird)

Source Reuters

Indonesia to impose a 2% export tax on biodiesel

borobodur indonesia

2% Export Tax on Biodiesel

Indonesia, a burgeoning exporter of biodiesel in Southeast Asia, will impose a 2% export tax on biodiesel for the first time in October, trade sources said this week.

Indonesia uses the average crude palm oil, or CPO spot prices in
Rotterdam to set its export tax on CPO and its derivatives every month. It
will raise its export tax on CPO to 7.5% in October from the current 6%, which sources said was due to rising global palm oil prices.

The export tax is aimed at restricting the flow of CPO exports so that cooking oil supply in the country would be guaranteed, mitigating fears of a shortfall in this staple commodity.