Reducing Greenhouse Gas Emissions, Indonesia Receives IDR 840 Billion Funds From Norway

Minister of Environment and Forestry Siti Nurbaya (Instagram @ siti.nurbayabakar)

JAKARTA - Indonesia has succeeded in reducing the rate of deforestation and forest degradation. Due to this success, the Indonesian government will receive work payments to reduce greenhouse gas (GHG) emissions from Norway worth 56 million United States (US) dollars or more than IDR 840 billion.

The Minister of Environment and Forestry, Siti Nurbaya, said that the handover of these funds will take place in June. This moment coincides with the 10th anniversary of the two countries agreeing on a climate finance cooperation through a commitment letter of intent (LOI) 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, "he said, in a written statement received by VOI, in Jakarta, Thursday, May 21.

Siti said that the success in reducing emissions was inseparable from the commitment, support and corrective efforts of the government collectively under the leadership of President Joko Widodo (Jokowi).

Furthermore, Siti said, currently the government is preparing a number of documents and reports as a prerequisite for payment. Among them are the measurement, reporting, and verification (MRV) document as a guideline for calculating RBP for Indonesia's REDD + performance since 2016, and reaching an agreement in February 2019.

Furthermore, this GHG emission reduction report will be used as the basis for submitting the first RBP payment. This report contains the reduction in emissions from deforestation and forest degradation in 2016/2017, with baseline data for 2006/2007 to 2015/2016.

Siti revealed, Indonesia's GHG emission reduction in 2016/2017 was reported at 4.8 million tons CO2eq. Formal submissions were made in June 2019 for the first RBP from REDD +, and then verification was carried out according to the MRV provisions.

After verification by the Norwegian side from November 1, 2019 to March 2020, the 2016/2017 emission reduction was 11.2 million tonnes CO2eq, which is considered higher than the original report of 4.8 million tonnes CO2eq.

Successfully Reducing Deforestation, Indonesia Receives Funds from Norway Indonesia's success in reducing the rate of deforestation and forest degradation, as well as various consistency in other supporting policies under the administration of President Joko Widodo, has succeeded in reducing greenhouse gas emissions. pic.twitter.com/QPSFkl7Fq4

- Ministry of Environment and Forestry (KementerianLHK) May 21, 2020

"The results of this assessment are used by Norway as a basis for performance payments for reducing GHG emissions from deforestation and forest degradation in Indonesia in 2016/2017," he said.

The price per tonne of CO2eq is US $ 5. The amount refers to the price prevailing at the World Bank for REDD +. After the first payment, there will be carbon payments or RBP for work performance in 2017/2018 and beyond.

Siti explained that the funds would be handed over by Norway to Indonesia through the Environmental Fund Management Agency (BP-DLH). This refers to PP 46 of 2017 concerning Environmental economic instruments and Presidential Decree No. 77 of 2018 concerning Management of Environmental Funds.

"The President ordered that these funds will be used for community-based environmental restoration programs, by involving as much community participation as possible, such as tree planting and sustainable local economic revitalization efforts," he said.

In addition, Siti said, currently the government is also preparing regulations that regulate GHG emissions into Carbon Economic Value (NEK) or Carbon Pricing. Through the coordination of the Coordinating Minister for Maritime Affairs and Investment, a Draft Presidential Regulation on Carbon Economic Value Instruments has been prepared.

The draft Presidential Decree includes setting up a national GHG control instrument and implementing a nationally determined contribution (Nationally Determined Contribution).

"Through a letter, I have also reported to the President these matters, namely regarding the payment of GHG emission reduction results from Norway; the implementation of the RI-Norway Letter of Intent and the addendum plan; as well as the regulation or regulation of the carbon business and GHG emission reduction," he concluded. .