Questions & answers

Norway-Indonesia REDD+ partnership - Frequently asked questions

In May 2010, Norway and Indonesia entered into a climate and forest partnership to support Indonesia’s efforts to reduce emissions from deforestation and degradation of forests and peat lands. Indonesia has since then, taken decisive action to reduce its forest and peat related greenhouse gas emissions. Norway has committed to support those efforts with up to one billion USD.

For more information and background for the bilateral partnership, please read the frequently asked questions and answers below.  

1.      Why did Norway choose to cooperate with Indonesia?

Indonesia has the third largest expanse of tropical forest following Brazil and the Democratic Republic of Congo, and it is crucial for the people living in the forest, for biodiversity and carbon storage. The emissions from deforestation are significant. Norway and Indonesia both recognize that climate change is among the greatest challenges facing the world today. In October 2009, President Susilo Bambang Yudhoyono committed to reducing Indonesia’s CO2 emissions by 26% against a business-as-usual trajectory in 2020, the largest absolute reduction commitment made by any developing country at the time. President Joko “Jokowi” Widodo continues the ambitious climate efforts, and this was evident when he presented a goal of reducing CO2 emissions by 29% by 2030, or 41% with international support. Indonesia has set a bold target and Norway wants to support the Indonesian government’s efforts to realize its commitments through reduced deforestation and degradation of forests and peat lands.

 

 2.      How does the partnership work?

Norway provides substantial support to committed tropical forest countries, such as Indonesia, in their efforts to develop a national strategy to reduce deforestation, implement necessary reforms, and eventually reduce forest loss.

The partnership between Indonesia and Norway is outlined in a Letter of Intent signed by the two countries in 2010, and the cooperation is divided into three phases. In the first phase, funds have been devoted to finalizing Indonesia’s climate and forest strategy and putting in place enabling policies and institutional reforms. In phase two, the objective is to prepare Indonesia for the contributions-for-verified emissions reductions while at the same time initiate larger scale mitigation actions through province-wide projects. In the third phase, the contributions-for-verified emissions reductions mechanism will be implemented nationally.

As of mid-2016, the partnership is in an interim-phase between phase one and two.

 

3.      What is Norway’s financial commitment?

Norway and Indonesia entered into a partnership to support Indonesia’s efforts to reduce greenhouse gas emissions from deforestation and degradation of forests and peat lands in 2010. Norway will support these efforts with up to 1 billion US dollars based on Indonesia’s performance over the course of the next years. The majority of the support will be in terms of result-based payments (phase 3), while some support has already been given to support the initial phase 1 activities.

In addition to the bilateral agreement, Norway has supported a number of non-governmental organisations working in Indonesia since 2009. For the civil society grant scheme 2016-2020, Norway supports 19 organisations that operate in Indonesia. Many of them are Indonesian organisations, while some are international. These projects are related to the forest and climate agenda in one way or the other, including work with indigenous peoples and other forest dependent communities, strengthening law enforcement and governance in the forestry sector, collaboration with private sector and forest and peat research including monitoring of forest cover. This funding is not part of the USD 1 billion pledge, but are additional grants.

 

4. How much money has Norway disbursed to Indonesia?

As of mid-2016, Norway has disbursed approximately 8% av the pledged funding to Indonesia for their efforts to reduce deforestation and forest degradation. This amount is being channeled through different initiatives in which the Indonesian government engages with inter- and non-governmental actors, such as the UNDP and the World Resources Institute. Read more about these agreements here.

At least 80% of the funding is reserved for phase three of the partnership. Phase three involves payment for reduced CO2 emission that have been verified by an independent third-party.

In addition to the bilateral agreement, Norway supports a number of non-governmental organisations who implement forest-related projects in Indonesia. To learn more about these project, please visit the link providing an overview of all the projects Norway supports in the country.

 

5. On what is the money being spent?

Over the course of the first years, grants have been spent on phase one; preparations for REDD+. In this phase, the Indonesian government has taken a number of measures. Some examples are the establishment of REDD+ Agency, steps towards policy reforms in the forest sector, the development of a Monitoring, Reporting, and Verification system, the development of the One Map Initiative, reviews of laws and regulations related to forest concessions, development of funding mechanism design for REDD+, REDD+ Safeguards, Law enforcement instrument (multi-door approach), the establishment of a Peatland Restoration Agency (BRG) and the development of a fire monitoring and early warning system.   

The majority of funds are reserved for phase 3 whereby the funds will be disbursed based on a results-based mechanism, and where the funds are channelled through a REDD+ Fund managed by the Indonesian government.

 

6.      How are the funds being disbursed?

The majority of the funding for verified reduced CO2 emissions will be channeled through an agreed financial mechanism. 

The grants that already have been disbursed were channeled through multilateral institutions, such as the UN Development Program and the World Bank, as well as non-governmental organisations. Please read more under question 1.

 

7.  What measures are in place to prevent financial mismanagement?

Indonesia and Norway have agreed that the funds will be managed by a financial mechanism in the Ministry of Finance, and the funding will be managed according to international fiduciary standards.

Norway continuously works with partners, including the ones in Indonesia, to comply with zero-tolerance for financial mismanagement in all development cooperation.

 

8.  Will money go to reforestation and restoration?

Under the Norway-Indonesia REDD+ Partnership, funds are tied to verified emissions reductions from avoided deforestation, forest degradation or peatland conversion/destruction. Reported emission reductions will be verified by an independent verification mechanism. Some of the activities supported under the bilateral REDD+ program includes restoration of peatlands.

 

9.      Will Norway get carbon quotas from Indonesia?

No. All efforts under the Norwegian Climate and Forest Initiative to reduce greenhouse gas emissions are additional to Norway’s commitments in the Paris Agreement of Climate Change. Norway has, together with the EU, committed to reduce its emissions by 40% within 2030. Norway ratified the Paris Agreement in June 2016.

 

10.      How will this partnership impact Indigenous peoples rights?

The participation of representatives of indigenous peoples and local communities is a key principle in the Letter of Intent. They take part both in the planning and implementation of Indonesia’s REDD+ efforts.

 

It is documented that in areas where Indigenous Peoples and local communities have no or weak legal rights, their forests tend to be vulnerable to deforestation and degradation and thus become the source of CO2 emissions. In addition, experience show that strengthening the forest rights of Indigenous Peoples and local communities has other development benefits. These include helping communities adapt to climate change, securing livelihoods, conserving biodiversity, cultural survival, political inclusion, and avoiding or reducing conflicts.

Therefore, measures to protect and promote the rights and interests of peoples living in and from the forest is crucial to ensure establishment of successful REDD+ mechanisms as well as for implementation of national REDD+ strategies. 

To ensure a broad participation from indigenous peoples and other forest dependent communities, Norway has ramped up the support to civil society organisations working with these groups including AMAN, KKI-Warsi, Samdhana Institute, Paradisea and Yayasan Citra Mandiri Mentawai. Projects working with these groups’ rights is one of four main priorities in the 2016-2020 civil society portfolio, in which action is most needed, and where civil society was seen as being especially important.

 

10.      How will you make sure the funds reach local communities?

The Norway-Indonesia REDD+ Partnership is based on the principle that all relevant stakeholders, including indigenous peoples, local communities and civil society in Indonesia are given full and effective participation in planning and implementation. This means that a transparent benefit sharing mechanisms between the national and local governments will be established in line with Indonesian regulations.

 

11.  What are the expected results of the program?

The program is expected to bring significant reductions in Indonesia’s greenhouse gas emissions as well as improvements in forest governance and law enforcement. Approximately 62-76% of Indonesia’s current greenhouse gas emissions stem from land use change and peat degradation. This means Indonesia can make deeper cuts in CO2 emissions and do it more quickly than most other countries, and it’s this unique opportunity the Norway-Indonesia REDD+ Partnership will support. As part of the program, Indonesia will implement a two-year suspension on all new concessions for conversion of peat and natural forest.

 

12.  How will results be measured?

The partnership is performance-based, both in terms of actual emissions reductions and with regards to policy change and institutional reforms required. This is in itself a strong incentive to achieve results. Every year, an independent, third party review group will verify the results. The largest portion of funds will be made available based on a principle of contribution-for verified emissions reductions. The Indonesian government is currently working on establishing mechanisms that will enable them to monitor, report and verify emissions reductions according to the standards of the International Panel on Climate Change. This will ensure accountability and that emissions reductions can be trusted to be real, additional and permanent, and not displaced by emissions elsewhere in the country.

 

13.  Indonesia has set a target of 29% greenhouse gas emission reductions by 2030, and 41% if international financial support is available. What is this program’s contribution?

Considering that 62-76% of Indonesia’s annual greenhouse gas emissions stem from land use change and peat degradation, all efforts to reduce deforestation and peatland degradation may potentially have significant impact on Indonesia’s emissions figures.

 

15.  Will this program stop illegal logging in Indonesia?

According to estimates, illegal logging costs Indonesia range from US$600 million to US$8.7 billion per year (Luttrell et al. 2011).One of the objectives of the program is to secure a more sustainable management of forest in Indonesia, including in the field of law enforcement. 

In addition, Norway supports other efforts to tackle illegal logging. Examples are the United Nation Office on Drugs and Crime (UNODC), INTERPOL and the non-governmental organisations Walhi and the Environmental Investigation Agency.

Norway has supported an ongoing programme with UNODC since 2010 aiming to strengthen the capacity of Indonesian law enforcement officers to investigate and prosecute cases of illegal logging.


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