Regions to get due share of global warming fund

Urip Hudiono, The Jakarta Post, Jakarta

Regions hosting environmental projects will receive a share of money allotted to Indonesia under a planned global warming mitigation and adaptation fund to be discussed at the upcoming international conference on climate change in Bali.

The central government will disburse the money through the state budget's revenue sharing mechanism, Finance Ministry secretary general Mulia P. Nasution said, although the details are still to be discussed.

"It will still depend on whether the projects are business-to-business or government-to-government," he told reporters Monday.

"It's still too early to talk about how much will be allocated to each region, but the matter is expected to be agreed upon in due time."

Indonesia has been actively supporting a new proposal called the Reduced Emissions from Deforestation in Developing Countries mechanism, which is expected to provide more fair incentives -- meaning developed nations will also help -- for the better management of forests in developing countries.

The scheme will complement the Kyoto Protocol's Clean Development Mechanism, which requires developed nations to reduce their carbon emissions to invest in green projects, which are considered to be more feasible if implemented in developing countries.

The carbon trading scheme requires 2 percent of each project's proceeds -- which can fetch up to US$10 for every one ton of carbon dioxide reduced -- be set aside for a mitigation and adaptation fund. This global fund will be managed by a multilateral agency to support the development of sustainable technologies and help nations directly affected by global warming.

Related financial issues and sustainable development policies are expected to be discussed in a meeting of world financial ministers on the matter on Dec. 10 and 11, which will run in conjunction with the climate change conference from Dec. 3 to 14.

Indonesia has recently launched a campaign to plant 79 million trees in regions across the country, worth some Rp 1.28 trillion ($137 million).

Forestry Minister M.S. Kaban has said Indonesia may need up to Rp 216 trillion to replant all of Indonesia's forests that have been damaged.

Although not directly related to the climate change issue, the government has also been engaging in "debt-for-nature swap" schemes with creditor countries.

A recent program involved Indonesia providing 12.5 billion euros for forest conservation efforts in return for debt relief of 25 million euros.