This payment will build confidence in the performance-based payment system at international and national levels as an important instrument to push climate change mitigation.Jakarta (ANTARA) - Indonesia has received the first payment of US$20.9 million (Rp320 billion) under the World Bank’s Forest Carbon Partnership Facility (FCPF) for reducing greenhouse gas emissions arising from deforestation and forest degradation (REDD+) in East Kalimantan.
The first payment is based on the signing of an emission reduction payment agreement (ERPA) between the Indonesian government and the FCPF.
"This payment will build confidence in the performance-based payment system at international and national levels as an important instrument to push climate change mitigation," World Bank country director for Indonesia and Timor-Leste, Satu Kahkonen, said in a written statement received in Jakarta on Wednesday.
She lauded Indonesia's efforts to reduce the deforestation rate in the past five years and said she would try to support the country's transition to a green economy.
Under the existing agreement, Indonesia will receive payments of up to US$110 million (Rp1.6 trillion) for verified reduction in greenhouse gas emissions arising from deforestation and forest degradation.
Indonesia is the first country in East Asia and the Pacific to receive the payment under the FCPF program. The payment follows a 13.5-percent emission reduction reported by the Indonesian government in the monitoring period from 2019 to 2020. The country will receive the full payment after a third party finalizes the verification.
The first payment will be used in accordance with the benefit-sharing plan (BSP) document conceived and submitted by the Indonesian government to FCPF in October 2021.
Based on the document, the benefit sharing will be conducted in a consultative, transparent, and participative way to ensure that all relevant stakeholders gain from the emission reduction payment.
The payment will be given to parties contributing to emission reduction in East Kalimantan, including the Environment and Forestry Ministry, the regional government, and the community.
According to Environment and Forestry Minister Siti Nurbaya Bakar, the program has offered opportunities to the government, civil society organizations, the business sector, and the community to protect Indonesian forests together and reflects global recognition of Indonesia's success in reducing the emission of greenhouse gases due to deforestation and forest degradation.
"This is only the initial step. Our efforts to manage forests in a sustainable way will continue to achieve the target of reducing emissions in accordance with the Paris Agreement, tackle the impact of climate change, and place Indonesia on the green development route," she said.
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Translator: Agatha Olivia V, Suharto
Editor: Sri Haryati
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