HCS+ and HCS Approach: Linkages with the RSPO Process

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ROUNDTABLE MEETING ON SUSTAINABLE PALM OIL HCS+ and HCS Approach: Linkages with the RSPO Process Faizal Parish Global Environment Centre Co Chair RSPO Emission Reduction Working Group 1

RSPO and HCS RSPO P&C 2013 make clear reference to minimising GHG emission and avoiding HCS areas. RSPO Emission Reduction Working Group established in November 2013 Criterion 5.6 requires Monitoring and reduction of GHG fromexisting operations Criterion 7.8 requires that new plantations avoid HCS areas and focus on LCS area including grasslands and degraded forest on mineral soil as well as agriculture lands. Other key criteria Criterion 4.3/4 BMP inc water management in existing OPP on peat Criterion 5.6 Plans to reduce greenhouse gases, are developed, implemented and monitored. Criterion 7.3 No conversion of HCVAs since Nov 2005 Criterion 7.4 Minimising development on peat (generic default max 100ha/plantation development) Criterion 7.7 Zero burning 2

Progress with GHG work of RSPO RSPO PalmGHG Tool issued in 2013 RSPO GHG Assessment procedure issued December 2014 Formal Reporting on GHG monitoring under 5.6 from 2015 Formal submission of GHG assessment for New Plantings from January 2015 submitted at time of NPP report submission Progress with GHG work of RSPO (2) C 5.6 As of end October 2015 Received 106 submissions using PalmGHG V2.1.1 4 companies made submissions using own calculator/tool After cross checking with list of audited mills, almost 100% submission of GHG emission reports to Secretariat when audits against P&C 2013 were implemented C7.8 Since the 1st January 2015 C7.8 reporting must accompany RSPO New Plantings Procedure (NPP) submission 14 submissions received (from 4 different companies). Majority of submissions are from Indonesia 3

Methods used Above and below ground Conducted by internal team Estimation based on default values Conducted by external team Estimation based on sampling plots 10 submissions 4 submissions All submissions used Landsat images except for one submission which used Alos Palsar Soil carbon (peat) No peat present Estimation of peat carbon based on default equation 9 submissions 5 submissions Common mistakes/oversight in reports received Confusion with LUC analysis ( required only for HCV) Maps are not well explained Poor description of the vegetation strata and corresponding carbon stock For ongoing development, emissions from proposed new development are not clearly differentiated from existing operations Lack of scenario testing and mapping overlay (integrated map showing results of HCV assessment, SEIA and carbon stock assessment) Scenarios poorly explained and scenario choice not well justified Unclear if the carbon stock assessment resulted in additional areas outside of identified HCV areas that will be set aside and the plantion plan/design 4

Next Steps agreed by ERWG Schedule meeting(s) with the main assessors to highlight reporting requirements Minor corrections/updates including expanded list of carbon stock defaults Prepare an FAQ for C7.8 (available in English, B. Indonesia, Spanish and French) by end of 2015 Translate GHG Assessment Procedure (B. Indonesia, Spanish and French) More guidance on reporting in new update of GHG Assessment Procedure for New Plantings. Update is scheduled to be completed by mid 2016 Linkage between HCS+ and HCSA and RSPO process Several members of the RSPO have committed to HCS+ and HCSA processes HCS+ and HCSA Process teams had a recent meeting to explore options for convergence SPOM (HCS+) Group has proposed possible linkage to RSPO processes Possible linkages discussed by RSPO ERWG on 13 14 November 2015 Areas of synergy and linkage were identified and ongoing dialogue on convergence will take place. 5

Part1: Above and below ground carbon estimation RSPO GHG Assessment Procedure for New Plantings Can be used as voluntary option(s) HCS+ Carbon stock assessment HCSA Carbon stock assessment + Part 2: Designing new development and management plan Step 1: Combine results of carbon stock assessment with findings of HCV, SEIA, and community assessments to create an integrated spatial map HCS+ Applies threshold and carbon neutral development concept to identify development area Step 2: Estimate potential GHG emissions associated with new plantation development Step 3: Selecting optimal development scenario. Scenario setting includes management and operational considerations such as methane capture, etc. HCSA Applies Patch Analysis Decision Tree to determine areas to conserve Step 4: Preparation of management and mitigation plan GHG Assessment Procedure for New Plantings 6

HCS+ with indicative additional steps in the GHG Assessment Procedure. RSPO member companies that wish to follow the HCS+ Methodology would: a) Apply the methods described by HCS+ to map and estimate the above ground carbon and soil carbon and prepare a map of land cover with carbon stock. b) Apply the 75tC/ha carbon stock thresh-hold and plan for carbon neutral development as per the HCS+ recommendations to determine the area for development c) Follow RSPO GHG Procedure/Palm GHG to i. predict GHG emissions related to mill operations ii. prepare a management and mitigation plan including emission reduction measures; iii. Set up a monitoring process ( Using LIDAR/other tools) HCSA with indicative additional steps in the GHG Assessment Procedure. RSPO member companies that wish to follow the HCS+ Methodology would: a) Apply the methods described by HCSA toolkit to map out potential HCS forest. (Note HCSA does not have a soil carbon estimation process due strict NO PEAT commitment. Any company choosing this option must also commit to NO PEAT development). b) Develop a plan based on decisions on where to proceed with development and where to maintain/conserve as set aside areas c) Follow RSPO GHG Procedure/Palm GHG to i. predict GHG emissions related to both the plantation and mill operations ii. prepare a management and mitigation plan including emission reduction measures; iii. Set up a monitoring process 7

Updating of RSPO GHG Assessment procedure The GHG Assessment Procedure for New Plantings will be updated before the end of the implementation period ( 31 Dec 2016) to enable public reporting from Jan 1 2017. Target date for completion and release would be mid 2016. In the updated version, the interim acceptance of HCS+ and HCSA ( on any converged combination) as option(s) that can be adopted to comply with parts of the Procedure. However additional portions of the Procedure that are not in HCS+/HCSA will still apply. Future areas of joint development Convergence of approaches Pilots/trials Landscape wide remote sensing LIDAR and satellite imaging Smallholder System development Jurisdictional/landscape approaches Go/No Go area maps Best practice documentation Development of incentives for maintaining HCS areas (eg BD and CC funding and support from supply chain) 8