InfiniteEarth and Orangutan Foundation International Kalimantan originally launched the Rimba Raya project back in 2008 to conserve 91,000 hectares of Indonesian tropical rainforest and peat swamp in Central Kalimantan - a mission, which has proven to be more challenging than expected. If it all went according to plan, over the next 30 years, Rimba Raya would have prevented 100 million tons of CO2 from being released into the atmosphere, gaining hundreds of millions of dollars from the sale of REDD carbon credits, benefiting both the poor local community and the government. And it seemed for a moment that Rimba Raya had all aspects aligned to succeed. Its effectiveness as an offset project was about to be officially recognized by third-party verification standards -- the Verified Carbon Standard (VCS) was going to issue Rimba Raya the world's first certified REDD carbon credits, adding to its expected triple gold rating under the Climate, Community and Biodiversity (CCB) Standard. The project even received attention from international stakeholders. Russian energy conglomerate Gazprom was to inject some significant funds in the project whilst rallying potential buyers for the REDD carbon credits. Norway had agreed to pledge $1 billion to develop a national REDD strategy.
Considering all the positive developments, what in the world made the Ministry of Forestry sell out? It could be greed, as it is widely speculated. It could be pressure from a local industry group with particularly strong influence in the political process. It could be lack of faith in the still young market for REDD carbon credits as a reliable vehicle for cash flow. And it could very well be a combination of all three. One thing is for certain -- Rimba Raya highlights the serious economic and political hurdles REDD projects all over the world have to overcome if they are to carry out their environmental mission.
According to data by the United Nations Environment Program (UNEP), over 17 per cent of global emissions are caused by land-use, land-use change (such as wetlands, grasslands etc. being cleared for agriculture) and deforestation. The sector is the world's third largest greenhouse gas (GHG) emitter. Indonesia alone holds one-third (over 33 per cent), Carbon Credit Capital the total emissions caused by deforestation, followed by Brazil (18 per cent) and Malaysia (9.2 per cent). Therefore, most REDD projects are targeted mainly in those areas.
Regardless of the location, REDD projects share the following three culprits, which can hinder their development:
Unstable political environment. As proven by UNEP data above, REDD projects take place in developing countries, in rural areas with poor communities. Those areas tend to have weak local governments, and sometimes conflicting interests of different local groups can pose serious threats to the development of the project. Volatile legislation and ineffective law enforcement can also contribute to a hostile REDD environment.
Economic conditions.As we mentioned above REDD projects are typically in areas with poor local communities. Poverty may increase corrupt behavior not only within the government, but also within the management and regulation structure of the REDD project. And as is usually the case with any industry, where money can't get things done, a lot of money can, especially if they are offered upfront. Conservation projects are long-term investments with sometimes delayed returns. In the case of Rimba Raya, the promising cash potential from the REDD carbon credits and the foreign subsidies were overshadowed by the fast-cash promises of a lucrative local industry. Moreover, REDD offsets are touted first and foremost for their impact on climate change and biodiversity. The wide range of ecosystem services and economic benefits for local stakeholders have been grossly overlooked. Continuously emphasizing the economic benefits for the local government and communities may increase local support for REDD.
