Feasibility Study For BP Forest Carbon Offset Project

Abstract

BP Indonesia, one of oil and gas company which operates in Teluk Bintuni District, has a commitment to reduce emissions by around 1 million tons of CO2 per year. Some of the actions that have been carried out are rehabilitation activities in an area of 1,320 hectares. However, this action is still far from reaching the emission reduction target. Therefore, these efforts need to be expanded through other mechanisms, such as a carbon offset mechanism or other mechanisms that are recognized by the central government and the international community. For this reason, BP Indonesia requires studies to make further decisions regarding emission reduction strategies that comply with national regulations or international carbon trading requirements. Faculty of Forestry, IPB University is mandated to conduct the feasibility study for BP carbon offset project. This report is a part of the study carried out in West Papua Province, Indonesia. The project will have four reports delivered: (1) inception report; (2) Mid Term report 1; (3) Mid Term report 2; and (4) Final Report. Inception report has been delivered in March 2023 and contains the preliminary result of the study, while this report is a mid-term report 1 containing: (i) a finding of implementation and implication of applicable regulations of forest carbon offset in West Papua; (ii) identification of potential working areas, including land status and ownership, ecological and social condition assessment; and (iii) result from the stakeholder engagement workshop, which was held in Manokwari on 14 June 2023. This report will be followed by mid-term report 2, which contain: (i) result from carbon inventory activity in BP Indonesia watershed forest rehabilitation area and assessment for carbon sink business unit; and (ii) Carbon stock calculation simulation and its sink in a certain period in implementation scale (forest management unit). Following the mid-term report 2, a final report will be delivered summarizing this study, including cost analysis for BP carbon offset project.