RI And Norway Sign Results-Based Contribution To Emission Reduction

Minister of Environment and Forestry, Siti Nurbaya

JAKARTA - The President Director of the Indonesian Environmental Fund Management Agency (BPDLH), Djoko Hendratto, and the Norwegian Ambassador to Indonesia, Rut Krüger Giverin, signed a Contribution Agreement (CA) regarding results-based contributions to emission reductions.

For information, this is the next step from the signing of a Memorandum of Understanding (MoU) between the Governments of Indonesia and Norway on 12 September 2022.

In the agreed MoU, Indonesia and Norway confirmed their intention to collaborate on a new climate partnership to support Indonesia's Forestry and Other Land Use (FOLU) Net Sink 2030 Operational Plan. In addition, Norway also supports Indonesia's efforts to reduce emissions from deforestation and degradation of forests through results-based contributions.

"Within ten working days after today's CA signing, Norway will make a results-based first phase contribution of USD 56 million to support the sustainable implementation of Indonesia's FOLU Net Sink 2030 Operational Plan," said Minister of Environment and Forestry (LHK), Siti Nurbaya at Manggala Wanabakti Building, Jakarta, Wednesday 19 October.

The Minister of Environment and Forestry explained that the results-based first-phase contribution from Norway, including the next-stage contribution, was channeled through the Environmental Fund Management Agency (BPDLH) under the Ministry of Finance. The Indonesian government itself will allocate more than USD 300 million in the state budget annually to support the FOLU Net Sink 2030 operational plan.

Norway's Minister of Climate and Environment, Espen Barth Eide, approved CA for financial contributions to Indonesia's achievements in reducing emissions from deforestation in support of the recently signed MoU between the two governments.

“Indonesia has become a global leader in reducing deforestation”, said Minister Eide.

Thanks to a comprehensive set of policies implemented by the Government of Indonesia, deforestation has been reported at its lowest point in the last 20 years. It has significance for the global struggle to control climate change and makes an invaluable contribution to conserving biodiversity.

This results-based first phase contribution is for an independently verified emission reduction of 11.2 million tonnes from a reduction in Indonesia's deforestation and forest degradation in 2016/2017.

In line with the MoU, results-based financial contributions will at a later stage be made by Norway as part of the emission reductions achieved in the following years after being reported and verified. Both parties have agreed to the MRV Protocol which outlines the principles of measurement, reporting, and verification, as well as social and environmental protection.

Indonesia's FOLU Net Sink 2030 Operational Plan outlines Indonesia's ambitions in the forestry and land use sector to become a climate-positive sink of more than 140 million tonnes of CO2 by the end of this decade, through controlling deforestation, forest and peatland degradation, which is equally good at sequestering carbon through restoration of forests, peatlands, and mangroves.

"We are impressed by the many policies that the Indonesian government has taken to reduce deforestation. Through the recently signed MoU followed by today's CA signing, we are supporting the Government of Indonesia to achieve its climate goals through the FOLU Net Sink 2030 Operational Plan. Norway is proud to support these activities through a flexible and transparent funding mechanism,” said Ambassador Rut Giverin.

The President Director of BPDLH, Djoko Hendratto said that the CA signed today includes 21 items, including detailing the scope and activities, transparency, assurance of compliance, and dispute resolution. Indonesia has good financial management governance that adopts comprehensively regulated international standards. Therefore, the implementation of this CA is based on Indonesian laws and regulations,” explained Djoko.