Hard! Indonesia Ends REDD+ Cooperation With Norway, IDR 840 Billion Funds Never Disbursed
JAKARTA - Indonesia is taking decisive steps. The government concludes the Letter of Intent (LoI) between Indonesia and the Kingdom of Norway on Cooperation in Reducing Greenhouse Gas Emissions from Deforestation and, Forest Degradation (REDD+), starting today.
The termination of the REDD+ LoI was conveyed through a Diplomatic Note, in accordance with Article XIII of the REDD+ LoI, to the Royal Norwegian Embassy in Jakarta.
In a press release from the Ministry of Foreign Affairs, Friday, September 10, the decision was taken through an intensive consultation process. In addition, considering the absence of concrete progress in the implementation of the Norwegian government's obligation to realize the Result Based Payment (RBP) for the realization of Indonesia's emission reduction of 11.2 million tons of CO2eq in 2016/2017, which has been verified by international institutions.
Termination of cooperation on REDD+, will not have any effect on Indonesia's commitment to meet emission reduction targets.
Indonesia has made significant progress in fulfilling the obligations of the Paris Agreement which has been ratified by the Indonesian government, including realizing the sustainable development goals (SDGs).
Indonesia's achievements can be seen, among others, from the lowest deforestation rate for 20 years achieved in 2020, as well as a significant reduction in the area of forest fires in Indonesia.
Promise Rp840 billion
Previously, Indonesia was considered to have succeeded in reducing the rate of deforestation and forest degradation. That's why Indonesia is promised to get payment for work to reduce greenhouse gas (GHG) emissions from Norway worth 56 million United States (US) dollars or more than Rp. 840 billion.
The Minister of Environment and Forestry, Siti Nurbaya, said last May that the handover of the funds would be in June. This moment coincides with the 10th anniversary of the two countries agreeing on climate finance cooperation through a letter of intent (LOI) commitment in 2010.
"It is projected that in June 2020 the funds will be paid using the Result Based Payment (RBP) scheme. This is the first payment for the achievement of reducing carbon emissions from forestry in 2016/2017," said Minister Siti.
Siti revealed, Indonesia's GHG emission reduction in 2016/2017 was reported to be 4.8 million tons of CO2eq. Formal submissions were made in June 2019 for the first RBP from REDD+, and were subsequently verified according to MRV provisions.
After verification by Norway on 1 November 2019 to March 2020, the 2016/2017 emission reduction was 11.2 million tonnes CO2eq, which is higher than the original report of 4.8 million tonnes CO2eq.
The price per ton of CO2eq is 5 US dollars. This amount refers to the prevailing price at the World Bank on REDD+. After the first payment, carbon payments or RBP will be carried out for work performance in 2017/2018 and beyond.