PROJECT BACKGROUND

GGGI is collaborating with the Indonesian government in the implementation of several Landscapes projects in Indonesia. Supports are provided to relevant technical ministries to achieve Indonesia’s FOLU (Forest and other Landuse) Netsink 2030 and NDC (Nationally Determined Contribution) targets by reducing and avoiding deforestation and degradation.

In support of Indonesia’s climate change mitigation and adaptation strategy, GGGI, with support from the Government of Canada, will implement two projects related to the blue carbon sector in Indonesia. The first project, Nature-based Solutions for Climate-smart Livelihoods in Mangrove Landscapes (NASCLIM), focuses on degraded coastal areas in North and East Kalimantan Provinces and will support the national Government of Indonesia, especially the Ministry of Environment and Forestry (KLHK), the Agency for Rehabilitation of Peatlands and Mangroves (BRGM), and the provincial authorities of North Kalimantan and East Kalimantan. The second project, Enabling Blue Carbon Project in Indonesia (EBC), will support the KLHK and Ministry of Marine Affairs and Fisheries (KKP) in formulating robust policies related to enabling framework, data management, research, and a standard methodology for the inclusion of the Blue Carbon ecosystem in Indonesia’s NDC.

Currently, the government’s primary focus for EBC is directed towards the sustainable management of the first two ecosystems, which are mangroves and seagrass, while NASCLIM will develop mangrove protection and restoration models to revitalize coastal areas in North Kalimantan and East Kalimantan economically and environmentally. Both projects will focus on sustainable mangrove management, synchronized and interlinked at national and sub-national level. During the inception period, a series of meetings was held specifically to identify the current policy baseline for Blue Carbon. The the governance context for mangroves and seagrass includes policies, planning, and institutional arrangements. A second key issue, aside from the governance context, is MRV.

Existing Policies:

• Laws covering forestry (e.g., Law No. 41/1999), coastal and marine ecosystem (e.g., Law No. 1/ 2014 on Coastal and Marine Management), and climate change (e.g., Law No. 21/2007 on Ratification of the Kyoto Protocol).
• National and subnational development plans (i.e. Law No 25/2004 on National/subnational Development Planning System).
• Local Government mandates and business process (i.e. Law No. 23/2014 on Local Government)
• Spatial plans (including terrestrial, marine, and forest) (i.e. Law No 26 2007; Law No 6/2023)
• Environmental Protection and Management Plan (i.e. Law No 32/2009 on Environmental Protection and Management, Bill of Presidential Regulation on Mangrove Protection and Management Plan, being finalized by KLHK and BRGM)
• Strategic plans of key ministries with tasks related to mangrove management, such as the 2020-2024 Ministry of Environment and Forestry (KLHK) Strategic Plan, (KLHK Ministerial Decree No. 15/2021 -revised)
• Mandates given to BRGM to manage mangrove ecosystems in 9 provinces (i.e. Presidential Regulation No 120/2020)
• Policies for blue carbon investment and voluntary carbon markets (e.g., Presidential Regulation No. 98/2021 on Economic Value of Carbon for NDC Targets and its derivative regulations).

LEGAL REVIEW ISSUES FOR THE BLUE CARBON REGULATION IN INDONESIA

1. Governance Context:

• Clarity on Institutional Responsibilities: The documents to be drafted should identify multiple institutions (BRGM, KLHK, KKP) where there are potential overlapping or unclear mandates for mangrove and seagrass management. The regulation process can be an opportunity to discuss with other sectoral ministries to have clearer roles and responsibilities of each institution to avoid implementation gaps in seagrass and mangrove management.
• National vs. Subnational Governance: The documents should highlight the involvement of both national and subnational governments in coastal management. There is an urgent needs for the regulation to establish a clearer framework for vertical coordination and ensure consistent policy application across different levels of governance in coastal-marine ecosystem protection and management.

2. Legal Framework and Policy Gaps:

• Seagrass Inclusion: Current policies on coastal-marine ecosystem focus more on mangroves and coral reef but lack of specific provisions for seagrasses. The regulation should address this gap by incorporating clear guidelines for seagrass protection and management.
• Non-Forest Land Mangroves: The applicability of existing mangrove regulations to non-forest areas (APL) needs to be agreed to have clearer boundaries of jurisdiction and authorities. The regulation to be should explicitly address mangrove protection efforts in these non-forest areas.
• Policy Fragmentation: The document to be made should identify existing fragmented implementation of existing policies for mangroves. The regulation should consider these policies into a comprehensive framework for blue carbon governance, where mandates, jurisdiction, and authorities are clearly defined and agreed upon.
• Alignment with NDC Targets: The regulation should ensure alignment with Indonesia’s draft on 2^nd Nationally Determined Contributions (NDCs) that will include Blue Carbon as the 6^th sector. This includes clear methodologies for quantifying and monitoring carbon storage in mangroves and seagrasses.

3. Monitoring, Reporting, and Verification (MRV):

• The regulation should establish a robust MRV system for tracking blue carbon stocks and emission reductions. This system should be transparent, accountable, and adhere to international standards.

4. Gender Considerations:

• While not explicitly mentioned in the provided situation, it would be beneficial to consider incorporating recommendations for gender-responsive policies within the Blue Carbon regulation. This could involve measures to:
  • Empower women in coastal communities through capacity building and participation in decision-making processes.
  • Address gender gaps in access to resources and benefits derived from Blue Carbon initiatives.

The Indonesian Ministry of Marine Affairs and Fisheries (KKP) is developing policy review as basis of the regulatory framework to manage and monitor blue carbon ecosystem in relation to its impact to the climate change and possible opportunity in improving the current NDC. This regulation will follow similar regulation issued by the Ministry of Environment and Forestry (KLHK) for Forest and Land Use sector. The Global Green Growth Institute (GGGI) is assisting KKP in this process by providing background studies, legal expertise, and support with public engagement. This is being done to ensure Indonesia can include the Blue Carbon sector in its Nationally Determined Contributions (NDC) and implement initiatives to reduce carbon emissions.

OBJECTIVES OF THE ASSIGNMENT

The purpose of the assignment is to help GGGI gather all the views of the KKP, KLHK and other related ministries to help GGGI improve the government’s policy and regulatory frameworks to enable the emission reductions in blue carbon sector (for mangrove and seagrass) to achieve the NDC and the upcoming LTS-LCCR 2050 targets.

The expert will work closely with KKP and GGGI to achieve several key objectives:

1. To Conduct a policy review of existing laws, regulations, and policies relevant to blue carbon management in Indonesia (consist of legal review, policy review, institutional review).
2. To provide recommendations on improving the current policy and regulatory frameworks on blue carbon as part of NDC implementation considering the legal, policy, institutional gaps to improve blue carbon mitigation.
3. To design and facilitate consultation for establishing regulation framework under KKP initiative. After identifying potential conflicts or inconsistencies between different legal instruments.
4. To provide regulatory framework for the blue carbon as an input to the Blue Carbon Roadmap that will be develop under the Blue Carbon Project as well as provide input to the policy in the subnational in NASCLIM Project.

1. An Inception Report (English) consists of 1) a brief analysis of current regulatory framework, laws, regulations, and policies related to the blue carbon sector in Indonesia; 2) consultation plan with stakeholders to discuss the analysis

1. A draft of policy review assessment to improve blue carbon sector policies in Indonesia (consist of legal review, policy review, institutional review). This review also summarizes the key findings and recommendations. This review also include the stakeholder consultation summaries (Detailed summaries of engagement activities and feedback.)

1. A proposed regulatory framework on Blue Carbon Sector, developed from the inception and strategy report. This regulatory framework must consist of legal review, policy review and institutional review, highlighting the gaps for each. To develop necessary legal inputs to the revision of the existing regulatory policy framework.

This regulatory framework consists of:

• Comprehensive Review Reports: Detailed reports covering legal, policy, and institutional reviews. Identification of gaps and inconsistencies with evidence-based analysis. Consolidated document summarizing the overall findings.
• Monitoring and Evaluation Frameworks: Frameworks with indicators and benchmarks for tracking policy impacts.
• Presentations and Workshops: Prepared presentations and facilitated workshops to discuss findings.
• Policy Improvement Recommendations: Evidence-based recommendations for policy enhancements.