2 Jun 2010
The Government of Norway has pledged up to US $1 billion for reducing greenhouse gas emissions from deforestation and forest degradation (REDD) in Indonesia.
Indonesian president Susilo Bambang Yudhoyono and Norwegian prime minister Jens Stoltenberg announced the deal at the Climate and Forest Conference in the Norwegian capital, Oslo, last Wednesday.
This funding comes on top of the $3.5 billion promised for conserving forest carbon by world leaders at the UN’s Copenhagen Climate Change Conference in December 2009.
Indonesia has half of the world's tropical peatlands and the third largest expanse of tropical forest after Brazil and the countries of the Congo basin. It also has one of the highest rates of deforestation in the world (currently 1.1 million ha a year).
In response to the pledge, Indonesian president Susilo Bambang Yudhoyono reiterated his country’s support for REDD.
"Working with our developed country partners, we will protect Indonesia’s globally significant carbon- and biodiversity-rich tropical rainforests while helping local populations become more prosperous."
Last year, president Yudhoyono set a national goal to reduce greenhouse gas emissions by 26% by the year 2020. REDD schemes that maintain forest cover are essential for Indonesia to meet this goal.
Although the Norwegian commitment has been described by the Center for International Forestry Research (CIFOR) as a “game changer”, there is confusion about what the funding will be used for and some environmental commentators remain unhappy.
Agus Purnomo, head of the secretariat of Indonesia's National Climate Change Council, said that Norway has only agreed to support reducing emissions from deforestation and forest degradation (REDD) programmes, which promote conservation and sustainable forest management, rather than REDD-plus programmes, which include reforestation.
Wandojo Siswanto, the head of working group on the climate unit at the Indonesia forestry ministry, told The Jakarta Post that Indonesia will seek to renegotiate the agreement with Norway.
"Indonesia needs money for tree planting," he said, noting that deforestation is expected to reach 1.17 million hectares (2.9 million acres) in 2010.
CIFOR director general Frances Seymour remains positive: “Donors have been supporting improved forest management in Indonesia for decades. But never before has a prospective contribution been this significant in terms of both size and ambition, and never before so clearly tied to performance.
“The plans announced in the Letter of Intent are supported by more than 10 years of research by CIFOR and others on the underlying causes of deforestation and forest degradation in Indonesia, and the measures necessary to reverse them in ways that are effective, efficient and equitable.”
CIFOR scientist Lou Verchot says there has been intense international debate over the past two years, on protecting the rights of local communities and indigenous peoples. This draft agreement is remarkable as it puts representatives of these people squarely into the governance structure of the financial instrument that will support REDD+ in the country.”
Rasmus Hansson, CEO of WWF-Norway says the deal sets an inspiring example of responsible climate cooperation between developing and industrialised nations.
"To WWF, it is of particular importance that the partners recognize that forest conservation is about much more than CO2 emissions. Safeguarding ecosystems, biodiversity and indigenous peoples' livelihoods is an absolute prerequisite for making this work -- and obviously a crucial benefit in itself."
However REDD Monitor editor Chris Lang remains to be convinced. He points out that the Letter of Intent says Indonesia will implement a two year suspension on all new concessions for conversion of peat and natural forest.
“This is not a ban, it is a temporary suspension, which applies only to new concessions.”
Nor, he points out, is a start date given for the two-year suspension. Under the deal, there will be anywhere between seven months and 43 months to hand over peat swamps and forests as concessions to plantation companies.
“The Letter of Intent has nothing to say, and will not affect, concessions for clearance that have already been awarded, but not yet cleared. This is potentially a vast area,” says Lang.
“Apparently, Indonesia and Norway could not agree to stop this because this would require compensation payments to be made to the companies that already have the contracts – which raises two obvious questions: What is REDD supposed to be about if it is not paying people and/or companies not to cut forests down? If one billion dollars is not enough to cover this, how much would it take?
“Pointing out what’s wrong with the Norway-Indonesia forest deal is not intended to suggest that business as usual is preferable. But the reality of this deal is that it will do little or nothing to address the pressures faced by Indonesia’s forests, indigenous people and local communities.
“The Norway-Indonesia deal shows that REDD is neither easy nor cheap. When the REDD rubber hits the road, it pretty quickly runs into the massive vested interests of forest destroyers and their supporters and beneficiaries in governments.
If Norway is going to pour large sums of money into Indonesia, which has an appalling record of forest destruction and spiralling corruption in the forest sector, then it should make sure that the money will improve the situation rather than make things worse. The Norway-Indonesia forest deal sets a terrible global precedent.”
The indigenous people appear to see things differently.
Abdon Nababan, secretary general of AMAN, Indonesia’s indigenous peoples alliance says the people he represent support the partnership, and will contribute to the planning and implementation, “provided we can continue to exercise our rights and traditional knowledge to have sustainable livelihoods from forest ecosystems."
For its part, CIFOR recognises the challenges ahead, including the resistance of those with vested interests in the status quo, and the need to strengthen the monitoring of compliance. Monitoring, reporting and verify reduced emissions, and putting in place enabling policies and institutional reforms, are named as priorities in the Letter of Intent.
Sources: Government of Norway website, REDD Monitor, news wires (various)
