Norway Holds Back REDD Money to Indonesia

Source : Carbon Positive – August 03, 2011

Norway has forwarded only $30 million so far of a $1 billion forest aid payment to Indonesia pledged in return for a two-year moratorium on deforestation, Reuters AlertNet reports. The Norwegian government says that full payment will only be made over a period of eight years, tied to milestones in forest protection. A second payment is being withheld until Jakarta establishes two independent bodies, one to administer the UN’s REDD+ program in the country, and another to monitor forest emissions.

Indonesia’s Ministry of Forestry says the agencies should be set up by the end of the year. Also key to the aid-for-forest-protection deal is the production of a detailed map demarcating the various categories of forest area nationwide and their usage. So far, both countries agree a first version of the map does not contain the necessary detail to fulfil the terms of the agreement. Leif John Fosse, senior adviser for the Norwegian government’s International Climate and Forest Initiative says the map is important for the success of the deal and will need to be updated twice a year.

In May, Indonesia finally made law a moratorium on forest clearing after a year of negotiations. The final arrangement was five months late and was weaker than originally proposed with existing concessions for forest clearing allowed to stand. There are differing figures on exactly how much forest is protected by the moratorium, either 72 million of 133 million hectares of primary forest or 64 million of 120 million ha, with 35 million still open to clearing.

Indonesian authorities have also said they will hand over the management of more forest areas to local communities as a means of lowering emissions.

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