Program & Services
A key aspect of sustainable landscape management is to have well-developed businesses that support, instead of destroy, healthy landscapes. Undertaking sustainable landscape management as a business venture will sustain the initiatives and activities. Moreover, sustainable landscape management requires innovative sustainable financing. Landscape Indonesia advises on how to optimize different financing mechanisms to fit exactly with the needs. It is also in the process of developing Landscape Incubation Facility for Environmental Entrepreneurship (LIFE).
Climate Financing and Carbon Market
Achieving emission reduction targets in Indonesia’s Nationally Determined Contributions requires massive financial resources. While a big part ¾ about 70 percent ¾ of the commitments are to be financed by own resources, the remaining needs to be financed through international cooperation, most likely through results-based climate financing (RBCF). Moreover, when coupled with NDC, carbon market may provide additional reduction for Indonesia. Meanwhile selling carbon ¾ coupled with NDC or beyond NDC ¾ could also bring in much needed investments into Indonesia while reducing emissions.
Indonesia has seen its deforestation rate decreasing over time. In the past, production of commodities ¾ notably oil palm plantations ¾ was accused of causing deforestation. But many activities remain to be carried out to ensure that reduced deforestation is permanent. At the same time, major commodity producers have committed to reducing their deforestation impacts in varying degrees. The “no-deforestation, no-peat, no-exploitation” (NDPE) commitment by major palm oil companies is an example. At the same time, in the case of palm oil, small holders make up for a major share of oil palm plantations, controlling more than 40 percent of the plantations, but with less than optimal productivity. Propensity to (illegally) open new plantations remains rather high, and as such illegal deforestation remains high. Landtrace / Landcoop is a tool currently being developed by Landscape Indonesia and HARAToken to trace supply chain of commodities from the farms all the way to the end buyer. It consists of two key components: mapping for all plantations, including smallholders, and tracing of all transactions from the farms to the end buyers. The platform is developed utilizing blockchain technology to benefit from its ultra-decentralized management and as such allows for data management be controlled entirely by data owners, inherent architecture for traceability, and a good balance between privacy and transparency of data sharing. It is to be piloted in the District of Siak in Riau, Indonesia, to include 10,000 small holders in 2020 and continued with all farms including the 53,000 or so smallholders in 2021. The pilot, that is to be carried out in cooperation with smallholder farmers, mills, and traders, is expected to show a proof of concept of the Landtrace. Landtrace / Landcoop will secure sustainable financing through the premium price that traceable commodities can gain from the market. It is expected that there will be sufficient amount of resources to be used to support the smallholders to be more productive by providing training of good agricultural practices, better inputs such as seeds, pesticides, and fertilizers, and some additional resources to provide low-cost lending to farmers. The use of the funds will be governed by farmers’ cooperatives.
Landscape Incubation Facility and Enterprising (LIFE)
Sustainable financing for sustainable landscape management requires the ability for self-financing. In many cases, that means developing landscape management initiatives as a business. Since “landscape management as a business” is a new concept, developing it requires the ability to see the risks involved and the uniqueness of developing the business. For which, Landscape Indonesia is currently developing a Landscape Incubation Facility and Enterprising (LIFE), to assist and facilitate environmental and social entrepreneurs. Eventually, the incubation program will be equipped with a Fund to provide financial resources for environmental and social businesses.