TAILIEUCHUNG - HIGH CARBON STOCK FOREST STUDY REPORT

To keep our analysis focused, we abstract from other channels emphasized in the literature through which expectations may have an immediate impact on current economic activity such as time-to-build, capital adjustment costs, or consumption smoothing. Also, it should be clear that we do not believe that the economic expansion experienced by the . economy during the second half of the 1990s was entirely driven by expectations of future higher productivity growth. Rather, we see our explanation as complementary to the actual improvement in firm level technology which, for simplicity, we omit from the analysis. Section 1 reviews the main events experienced by the . economy in the 1990s. Section 2. | HIGH CARBON STOCK FOREST STUDY REPORT Defining and identifying high carbon stock forest areas for possible conservation Published by Golden Agri-Resources and SMART June 2012 In collaboration with The Forest Trust and Greenpeace CONTENTS Foreword 4 Executive Summary 5 1 Introduction GAR policy commitments 9 Working with partners and stakeholders 10 Development of the HCS forest study approach 10 Socialisation 11 2 The High Carbon Stock Forest Methodology The HCS forest study approach 12 Location of the study sites concessions 14 Methodology 16 Stratification 17 Sampling 18 Design of sample plot 18 Plot details 19 3 Data Analysis Allometric 20 Data checking 21 Data extrapolation to calculate and 21 estimate carbon stock 4 Results and Discussion Results 22 Discussion 25 Limitations of the study 27 Conservation of HCS areas 28 5 Conclusion and Recommendations Recommendations for future research 30 Glossary 32 Acknowledgments 33 References 34 Appendix 1 36 Appendix 2 38 Appendix 3 39 Appendix 4 40 Foreword Golden Agri-Resources GAR together with subsidiary PT SMART Tbk SMART global non-profit The Forest Trust TFT and Greenpeace together the Team have reached a significant milestone with the publication of this report detailing the methodology and findings from the High Carbon Stock HCS forest study conducted under GAR s Forest Conservation Policy FCP . The fieldwork was carried out between the first quarter and last quarter of 2011. Following the launch of the FCP in early 2011 the Team proceeded to test how this policy and the provisional HCS forest definition would be implemented on the ground. GAR s intention is to take a leadership role in finding a suitable definition for HCS and to act on its commitment to ensure no deforestation footprint in its palm oil operations. Ultimately the conserved HCS forest area can revert to its natural ecological function as a forest. The Team is .

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