Norway has agreed to transfer an initial $30 million to Indonesia under its $1 billion REDD+ (reducing emissions from deforestation and forest degradation) partnership with the Southeast Asian country.
The fund will go towards Phase I of the partnership, which include “the establishment of an Indonesian REDD+ agency, development of a comprehensive national REDD+ strategy, implementation of an interim funding instrument, development of a monitoring, reporting and verification (MRV) framework, selection of a pilot province and the implementation of 2-year moratorium for new concessions on natural forests and peatland, commencing in 2011,” according to the Indonesian government.
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The agreement came during a meeting between Indonesian and Norwegian delegates in Jakarta on August 18 and 19.
Supporters of the Indonesia-Norway partnership on REDD+ say it could shift Indonesia’s development model away from one that consumes forests to one that protects forests. Detractors are concerned the money will be lost to corruption—as has been the case with Indonesia’s existing reforestation fund, which has lost more than $6B over the past 20 years—or used to subsidize large-scale conversion of natural forests to industrial timber and oil palm plantations.
The Indonesian government says the national REDD+ strategy “will be designed through an inclusive multistakeholder process.”
“It will not only focus on addressing all significant drivers of deforestation, forest degradation and peatland conversion, but will also aim to implement low carbon economic growth strategies and will contain all necessary financial safeguards as well as environmental and social safeguards to protect communities and biodiversity,” read a statement issued by President Susilo Bambang Yudhoyono’s Climate Change Council. “Norway will contribute to the financing of the policy and program infrastructure which will eventually generate revenue based on demonstrated [greenhouse gas emissions] abatement.”
Indonesia has committed to reducing emissions by up to 41 percent from a projected 2020 baseline provided it recieve international assistance in the form of technical and financial support. Deforestation, forest degradation, and peatlands drainage and conversion is the source of about 80 percent of the country’s emissions.
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